Becoming ‘Fit to Win’ - Unilever Global · PDF fileWe set out an energising vision...
Transcript of Becoming ‘Fit to Win’ - Unilever Global · PDF fileWe set out an energising vision...
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Becoming ‘Fit to Win’
Jean-Marc Huët
Paris, November 2012
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A rich history with strong fundamentals
India 1880
Argentina 1892
Indonesia 1933
Pakistan 1948
Philippines 1930’s
Brazil 1929
Geographic footprint Heritage and values Strong brands
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Growth remained elusive during the 2000’s
Turnover Market Shares
2004 2005 2006 2007 2008
€40bn
2004 2005 2006 2007 2008
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We set out an energising vision in 2009
2x revenue, ½ environmental footprint Supported by ‘Compass’
€40bn
€80bn
environmental impact
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We are focussed on growing ahead of our markets
Fewer Faster Better
>5,000
~600
2005 2012
<8
~90
2005 2012 2005 2012
No. of innovation projects Innovations into 10+ countries On-shelf availability
>800bps
Stage 1
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The USLP is now an integral part of our business model
Managing risk Driving growth Reducing cost
Stage 1
-113 tons plastic
20% cheaper
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Investing in the long term health of Unilever
Incremental brand investments Capex Leadership development
Supported by a more competitive IT and Enterprise Support infrastructure
2008 2012 2008 2012
~150bps ~€1.5bn
Stage 1
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Steadily improving the portfolio through M&A
€2.7bn
€1.3bn
PC
Food
Remedies
2008 2011 Acquisitions Disposals
Adding revenue Strategically aligned
-1.4%
-2.4%
-0.4%
1.2%
2009 2010
Stage 1
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Driving financial discipline in all parts of Unilever
Overheads Average working capital Savings
2009 2010 2011 2008 2011
-140bps
2008 2011
€1bn €1.5bn
Stage 1
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Improved systems and processes
Stage 1
IT systems convergence
200
4
Simplification: no. of reports
12,000
1,800
Speed in closing (days)
25
19
10
2010 Today 2014 From To From To
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Becoming more agile, faster and front foot
Faster decision making Market leadership Hair US
Home Care
Personal Care Refreshment
Foods
8 mega clusters
Stage 1
%
26
28
30
32
Unilever Competitor 2009 2010 2011 2012
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Our performance has improved accordingly
Broad based growth (Q3 YTD) Values shares up Revenue
€40bn
€50bn
2008 2012 Developed Emerging 2008 2012
+11.7%
+0.8%
Stage 1
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We are ready for the next stage of the journey
Becoming ‘Fit to Win’ ‘Fit to Compete’
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Consistent and sustainable top and bottom line growth
Virtuous circle of growth Financial growth model
Stage 2
Lever 1 Revenue growth
Operational leverage Lever 2
Cash flow leverage Lever 3
Core EPS growth =
Free cash flow growth
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Further enhance culture of continuous improvement
Bring overheads down Driving gross margin up
2009 Future 2011
Stage 2
2009 2011 Benchmark
-140bps
Consistent and sustainable improvement in core operating margin
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i) Drive gross margin: ‘maxing the mix’
Channel opportunities Margin - accretive innovation Premiumisation
Bars Powders Liquids + 400bps Drive drugstores and pharmacy
Stage 2
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ii) Drive gross margin: pricing efficiency
Counterparts linked to terms Promotional effectiveness Strategic pricing discipline
100
120
80
(-)P
rofi
t (+
)
(-)Turnover (+)
20% 10%
70%
Stage 2
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iii) Drive gross margin: continuous improvement
Low cost business models Value improvement Reduce waste
>€500m p.a.
Stage 2
• Buying savings
• Restructuring savings
• Production and logistics
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Continued discipline and cost control: A&P, business restructuring
Business restructuring Reduction of non-productive media
2009 2011 Benchmark
-200bps
-100 bps
2009 2011
Stage 2
1.3%
2.3%
% Revenue
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The Unilever IR Conference 2012
From:
‘Fit to Compete’ To: Becoming ‘Fit to Win’
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Unilever - Becoming ‘Fit to Win’
Jean-Marc Huët
Paris, November 2012